ACC 560 MART Learn by Doing/acc560mart.com ACC 560 MART Learn by Doing/acc560mart.com | Page 63

Accounts receivable
21,200
23,400
Land
20,000

26,000

Buildings
70,000

70,000

Accumulated depreciation—buildings
(15,000)
(10,000)
________
_________
Total
$110,500

$120,100

Accounts payable
$12,370
$31,100
Common stock
75,000
69,000
Retained earnings
23,130
20,000
_________ _________
Total
$110,500

$120,100

Instructions
a. Prepare a statement of cash flows for 2017 using the indirect
method.
b. Compute free cash flow.